During "Mad Money" on Wednesday, a caller asked Jim Cramer about MGM Resorts (MGM) . Cramer bet on Wynn (WYNN) .
"I feel strongly that because China is coming back, we need to be in Wynn Resorts," was Cramer's response.
Let's check out the charts and indicators of WYNN.
We last reviewed the charts of WYNN on Sept. 18 and wrote that, the charts of WYNN "are bearish and this does not look like the time to gamble on a rally. Look for lower prices in the weeks ahead."
In this updated daily bar chart of WYNN, below, we can see that prices did not perk up until this month. Prices gapped above the declining 200-day moving average line and now stand above the rising 50-day moving average. Trading volume spiked higher with the price gap and the On-Balance-Volume (OBV) line now shows a rising pattern from late September telling us that buyers of WYNN have been more aggressive. The Moving Average Convergence Divergence (MACD) oscillator has given us an outright-buy signal this month, as it crossed above the zero-line from below, The chart of WYNN will look stronger when it can close above its June high.
In this weekly bar chart of WYNN, below, we can see an improvement since September. Prices are now above the declining 40-week moving average line. The weekly OBV line is not far from making a new high for this year and the MACD oscillator is close to a test or even a cross of the zero-line.
In this daily Point and Figure chart of WYNN, below, we can see a potential upside price target in the $174 area. A trade at $106.54 will refresh the uptrend.
Bottom line strategy: The charts of WYNN have improved since our last inspection. With weakness in the broad market traders need not rush into the long side. Wait for a pullback to $90 and then risk a close below $80. Consider adding to longs above the June high. The $175 area is our longer-term target for the second half of 2021.
